exceptional growth opportunity Jan 2017 1 ASX : BLK Gold producer - PowerPoint PPT Presentation

Australian gold producer with exceptional growth opportunity Jan 2017 1 ASX : BLK

Gold producer with exceptional growth opportunity  Matilda Gold production commenced in Oct 2016  Expect production of 60- 70koz for FY’17  Market cap ~ A$197M with strong liquidity ~ A$35/resource oz  Expansion study well advanced aiming to grow production beyond 200kozpa  Resource 6.4Moz @ 3.2g/t, 4 large scaleable gold systems & over 1,000km 2 landholding (1)  Few Australian gold projects capable of +200koz and long mine life 1) Refer to ASX release dated 13 th December 2016 2

Corporate Information CAPITAL STRUCTURE BOARD OF DIRECTORS Bryan Dixon Market cap. @ A$0.69 A$197M Managing Director Mining Develop’t & Corporate Alan Thom Shares on issue 286M Director – COO Mining Develop’t & Operation Strong Liquidity - 1 month volume 37M Milan Jerkovic Non-Exec Chairman Mining Develop’t & Operation Options @ avg $0.26/share 33M Greg Miles Non-Exec Director Geology Cash @ 31 Dec 2016 +A$10.7M Peter Rozenauers Non-Exec Director Mining Finance & Corporate Debt @ 31 Dec 2016 -A$38M 12 month performance SHAREHOLDER ANALYSIS Hunter Hall 13% BLK +178% Institutional – Australia 13% Institutional - Europe & UK 11% Strong Institutional - Nth America 7% liquidity Institutional – Asia 4% Retail 52% ASX Gold Index +59% Directors and management 5% Top 20 60% 3

Australia’s best gold belt  In Australia’s largest gold belt stretching from Norseman through Kalgoorlie to Wiluna  Regional endowment > 40Moz  Matilda/Wiluna Operation has over 11Moz endowment including >4.3Moz of past production – Largest endowment in region  Positioned for new discoveries and economic development of existing resources 4

Matilda Progress to Date • Matilda Progress to Date  Mar 2014, acquired gold plant and mine and consolidated the Wiluna Goldfield  Dec 2014, scoping study - Mineral Inventory 5.0Mt @ 2.8g/t for 454,000oz Au  June 2015, BLK completed $38.5M deal with Orion Mine Finance  DFS published in Feb 2016 and improved to June 2016  Mine Plan 9.3Mt @ 2.9g/t for 873,000oz Au (2)  Reserves 7.0Mt @ 2.5g/t for 560,000oz Au (2)  Very strong conversion of Mine Plan to Reserves to date  Resource 6.4Moz @ 3.2g/t(49% indicated) with acquisition and exploration cost of <$6/oz (1)  June 2016 mining approvals & July 2016 Mining commenced  Oct 2016 first gold production  Gold production ~ 16 months after receiving the Orion funding deal  Ramped up to 4,900oz production in month of Dec 2016. • Matilda Operating Plan  Nameplate production this quarter  Continue to improve and optimise operations and mine plan  Further reserve upgrades expected with > 5Moz resource outside the mine plan  Finalise expansion plans to fully utilise vast and diversified resource base Refer to ASX release dated 13 th December 2016 1) 5 Refer to ASX release dated 17 th June 2016 2)

Ramp Up and FY 2017 Guidance • Crushing circuit availability slowed ramp up but now operating at above 1.7Mtpa feasibility design • Mills have run at up to 250tph (2.0Mtpa) currently de-bottlenecking to achieve steady state beyond 210tph (1.7Mtpa) • Grade profile ramping up – • Into higher grade in M10 & M3 pits • Golden Age development ore averaging 4.9g/t • Plant recovery 92% - averaged during Nov& Dec’16 • Leach tail 0.11g/t avg during Nov&Dec’16 Matilda Gold Production to Dec 2016 • FY2017 production guidance Gold Produced (oz) Milling (tns) 180,000 10,000 Head Grade (g/t) Recovery (%) • Produced 4,900oz in month of Dec 17 9,000 160,000 8,000 • Production building by the month 140,000 7,000 120,000 • Gold production – 60-70koz for 8.5 mths 6,000 102,600 t 100,000 5,000 80,000 77,918 t 4,894 oz • C1 A$840/oz and ASIC costs A$1,140/oz 4,000 60,000 3,000 40,000 2,603 oz 2,000 30,685 t 20,000 1,000 1,277 oz 0 0 6 Oct Nov Dec

Prospectivity an Embarrassment of Riches  Resource 63Mt @ 3.2 g/t for 6.4Moz Au (1) – 49% indicated resource level  Consolidated Wiluna goldfield with all deposits < 20km of plant  Good mix of open pit & high grade UG ore  +1,000km 2 of tenure & 55km of strike  4 large gold systems capable of sustaining a long mine life  Averaged gold production of 101,000ozpa over 27 years of operations Past Resources Drilling Production koz km Strike km Matilda >200koz 730 246 7 Quartz reefs >300koz 260 73 15 Lake Way 42koz 360 92 9 Wiluna >4Moz 5,070 1,350 7 7 1) Refer to ASX release dated 13 th December 2016

Blackham Strategy Blackham Strategy  Strengthening and lengthening reserves profile  Game changing discoveries & opportunistic bolt on acquisitions Matilda - Stage 1 – 100,000ozpa  Gold production started from oxides & high grade free milling reefs  Soft free milling ore will be used build balance sheet  Aggressive exploration on high grade reefs & base load oxide ore  Rapidly growing long term mine plan Matilda & Wiluna - Stage 2 +200,000ozpa  Additional ore feed from Wiluna sulphides – 5.1Moz @ 3.9g/t  Additional milling capacity to supply the existing sulphide circuit  Wiluna open pit resource success underpins expansion plan  Open pit mining and processing studies in progress  Expansion study aimed at expanding production to +200kozpa 8

Matilda Mine – Base Load Ore and Growing  10kms stacked, repeating gold lodes Resources Mt Grade Koz  Soft, deeply weathered oxide ore Measured 0.2 2.0 13  Production (1987-1993): Indicated 7.7 1.8 445 Inferred 4.9 1.7 270  2.2 Mt@ 2.6g/t = 181,000oz au Total 12.8 1.8 728  Mine Plan continues to grow  3.7Mt @ 1.8g/t for 213,000oz Au 1)  Gravity & leach recoveries 93%  Soft rock & ore with significant free dig  Designing new M6 pit to the south following recent drill success Growing source of large tonnage base load ore 9 9 Refer to ASX release dated 17 th June 2016 1)

Matilda Regional Stacking & Repeating Lodes  >10kms of prospective shear zone  Historical drilling identified mineralisation up to 3km from the mine area  Ineffective historical RAB requiring RC follow up along strike and at depth  Alluvial cover to north & south an impediment to previous exploration  Mentelle Trend - prospective Matilda look-a- like shear?  Utilise gradient-array IP (GAIP) geophysical survey to detect Au + sulphides: characteristic of Matilda  Large RAB program to test basement  Targeting new Matilda-sized mine ~ 1Moz 10

Matilda M10 Mining and Haulage 11 11

Golden Age – High Grade Quartz Reef  Recent drilling confirms the open 11m @ 5.87g/t pit potential 11m from 50m @ 5.87g/t from 50m Previous Production 160,000oz @ 9g/t  UG produced 160,000oz Au @ 9.0g/t  Middle Resource 290kt @ 9.0g/t for 85,000oz  UG mining development ore avg 4.9g/t 12

Golden Age Underground Mining 13

Mining One Reef with 15km of Reef Prospects Commence UG mining Golden Age Expand resource and reserve base Commence Galaxy open pit Add 2 nd UG mining area Aim to stabilize 50,000ozpa from reefs 14

Stage 2: Wiluna 5.1Moz  Total resources 41Mt @ 3.9g/t for 5.1Moz (1) -  OP resources 16Mt @ 2.5g/t for 1.3Moz  UG resources 24Mt @ 4.7g/t for 3.7Moz  Operating history gives good understanding of processing costs & recoveries  83% average recoveries over 20 years  opportunities to improve floatation recoveries  Mining plan is the key to unlocking the value  Substantial mine development - 5 declines  critical mass of reserves for each decline  One open pit and two declines operating gives flexible and sustainable mine plan 1.5 kms  Feasibility and development confirms sulphides are economic - AISC A$1,140/oz  Estimating maiden Wiluna open pit reserves following successful maiden resources 15 1) Refer to ASX release dated 13 th December 2016 and 23 January 2017

East West Pit - large scale pit Priority Target  Pit optimising on 2.7g/t diluted grade  Significant mineralisation in purple zones not modelled in resources – economics likely to improve with further drilling  wide ore zone ideal for open pit mining 16

East West Pit - priority drillout of targets Priority Targets  Pit optimising on 2.7g/t diluted grade  Significant mineralisation in purple zones not modelled in resources – economics likely to improve with further drilling  Drillling priority targets could reduce strip ratio and result in a single large pit 17

East-West pit cutback opportunity 600m wide 230m No deep drilling  East-West pit optimising with a grade of 2.7g/t to a maximum depth of ~230m  Wide zones of mineralisation ideal for open pit mining  central zone mineralisation intersected 100m to the north and 200m to the south with 18 no drilling in between - follow up program commencing in February

East-West pit cutback opportunity 600m wide No drilling 230m deep  East-West pit optimising with a grade of 2.7g/t to a maximum depth of ~230m  Wide zones of mineralisation ideal for open pit mining  central zone mineralisation intersected to the north (5m @ 2.7g/t) & south (14m @ 3.7g/t)  Follow up program commencing in February 19